The following is an edited summary from the Prospectors & Developers Association of Canada report,
State of Mineral Finance 2018: Gaining Momentum. For more information and to read the full report, visit
www.pdac.ca.
After a prolonged downturn in mineral industry activity, 2016 and 2017 were characterized by rising commodity prices that sparked increased financing opportunities and exploration expenses, both in Canada and globally. A cyclical upswing in global economic activity, coupled with U.S. dollar depreciation and low interest rates, has driven an improvement in the commodity complex. However, improvements in financing and exploration activity have not spread evenly across the mineral industry.
The International Monetary Fund (IMF) estimates for global economic growth — measured by gross domestic product (GDP) — have rebounded from a low of 3.2% in 2016 to 3.7% in 2017, and could increase to 3.9% through 2018–2019. A rebound in global GDP combined with higher expectations for growth in China and other advanced economies, as well as U.S. domestic infrastructure spending, are likely drivers behind increased demand for industrial commodities. As a result, monthly average prices of key base metals improved significantly over the past two years (36–110%), while monthly average prices for precious metal have experienced more modest increases (6–15%) over the same period.
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